Tragic example of failures of privatisation and outsourcing requires Government to intervene to protect public sector work, says GMB

GMB, the UK’s general union, demands the Government intervene and protect Carillion workers’ jobs and pensions – rather than focussing on bailing out a failing private company.

Carillion, one of the government’s biggest contractors, is struggling under £1.5bn of debt, including a pension shortfall of £587m. [1] (Read More)

The government is meeting Carillion and the Pensions Regulator today (Friday) to discuss the services and construction company’s deficit.

GMB repeatedly asked Government to stop spending public money on Carillion when they emerged as key players in the blacklisting scandal which resulted in a compensation pay out of £75 million through legal action taken by GMB.GMB says the governments focus must be protecting jobs in vital public sector infrastructure projects, rather than bailing out a private company with a track record of treating workers badly.

Rehana Azam, GMB National Secretary, said:

“First and foremost, workers’ jobs must be protected. It’s not right that GMB members working for Carillion should face uncertainty and insecurity through no fault of their own.

“Handing Carillion bosses a blank cheque bail out is completely unacceptable – company bosses should not be rewarded for failure with public money.

“This is a company with an abysmal track record when it comes to protecting workers.“This is yet one more lesson that the failures of privatisation and outsourcing and ministers should be protecting people’s jobs rather than bailing out the company.

“We need an urgent task force, including employers and trade unions, to rescue this vital work from the inadequate grip of Carillion management.

“We seek transparency about the scale and nature of jobs and contracts which Carillion outsource to other subcontractors to evaluate how the collapse of the company could impact on infrastructure projects, the public sector and the wider economy.

“Government needs to urgently consider a public sector vehicle for taking on this vital work, just as it has when private rail companies have walked away and failed the taxpayer.”